TCF Financial reported net income of $73.8 million for Q1/18 was up 59.4% or $27.5 million from $46.3 million in Q1/17. TCF noted non-interest income from leasing and equipment finance was $41.8 million, up $13.5 million or 47.9% compared to the same quarter in 2017.

Leasing and equipment finance Q1/18 period end outstandings of $4.666 million were up 9.1% from $4,276 million at the end of Q1/17.

Leasing and equipment finance interest income and yield in Q1/18 of $56.4 million and 4.81%, respectively were up from $48.0 million and 4.48% for the same quarter a year earlier.

Leasing and equipment finance non-interest income for Q1/18 increased $13.5 million, or 47.9%, from Q1/17 and was consistent with Q4/17. The increase from Q1/17 was primarily due to an increase in operating lease revenue, mainly driven by the acquisition of a leasing company in Q2/17 and an increase in sales-type lease revenue.

Inventory finance Q1/18 period end outstandings of $3.458 million were up 20.7% from $2,864 million at the end of the Q1/17.

Inventory finance Q1/18 interest income and yield of $51.2 million and 6.64%, respectively, were up from $39.5 million and 5.93% for the same period in 2017.

Craig R. Dahl, TCF chairman and CEO, said, “We delivered a strong start to our year in the first quarter with a continued focus on our four strategic pillars, which drove profitable growth and improved financial performance. We are seeing the continued benefits of an asset sensitive balance sheet as our earning asset yields expanded in the quarter, especially in our variable- and adjustable-rate portfolios.

“Our efficiency ratio improved on a year-over-year basis and we project further improvement throughout 2018. In addition, the run-off of our auto finance portfolio progressed as expected in the first full quarter following our discontinuation of originations, while our overall credit quality remained strong. Finally, we successfully executed various capital initiatives including the redemption of our Series B preferred stock and additional share repurchases.

“As we look to build on our first quarter momentum for the balance of the year, we are focused on driving shareholder value through strong execution of our strategy. We are taking steps to reduce the risk profile of our balance sheet to further lower our credit, operational and liquidity risks. We also maintain a positive outlook for our diversified lending businesses, including consumer real estate, commercial, leasing and equipment finance and inventory finance businesses from a growth, profitability and credit quality perspective. As a result, I believe we are well-positioned to improve our return on average tangible common equity in 2018 while utilizing capital more efficiently and reducing our overall risk profile.”